Brief on Goods and Service Tax Bill

What is the Goods and Services Tax?

As the name suggests, it is a tax levied when a consumer buys a good or service. It is meant to be a single, comprehensive tax that will subsume all the other smaller indirect taxes on consumption like service tax, etc. This is how it is done in most developed countries.

What is preventing GST from being a reality?

A major change like GST requires a constitutional amendment, which requires a bill to passed in both houses of Parliament. The GST constitutional amendment bill was passed in the Lok Sabha in May this year.

It has been held up in the Rajya Sabha due to objections being raised by the Opposition regarding the Bill as well as issues with no direct connection to GST.

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